Dr. J's Maths.com
Where the techniques of Maths
are explained in simple terms.

Money matters - Car costs.
Test Yourself 1 - Solutions.


 

Purchasing a car. 1.
   
   
   
  5.
Fuel consumption. 6.
  7.
  8.
 

9. 800 km is 8 times the standard of 100 kms.
Hence we use 8 × the energy - so 8 × 15 kWh = 120 kWh.

@ 20c/kWh = $0.20 × 120 kWh = $24.
  10. Average use: 10,000 km/year.
  Petrol Car Electric vehicle
Average consumption 5 litres / km 15kWh/100 km
Energy used in
1 year		 2,000 litres 667 kWh
Av. energy cost $1.30/l 20c/kWh
Annual total $2,600 $133.40
  11.
Depreciation. 12. A car is purchased for $23,200. Its depreciation can be calculated using a straight line depreciation of $4800 p.a. or using a declining balance rate of 30% p.a.

(i) Find the value of the car after 6 years using the declining balance method.

(ii) Which method will give the car the greater value after 3 years?
  13.
Insurance.

$1,230 × 60% = $738.
   
   
Running costs.  
 

David lists the costs of running his car as follows:

1. Registration - $378 annually.

2. CTP insurance - $546.00 annually.

3. Comprehensive insurance - $460 annually.

4. Service and repairs - $450.00 every three months.

5. Petrol and consumables - $40.00 per week.

He is intending to put money aside into an account each week to cover these costs and also add a 10% contingency in case of any unforseen circimstances.

How much (to the nearest dollar) should David deposit into his special car fund each week?
 

17.

So the GST component is $25.